Subcontractor Default insurance

Cove Builder Control keeps projects moving if a subcontractor defaults

Subcontractor Default Insurance is a highly specialized product providing coverage to general contractors for direct and indirect costs of subcontractor defaults.

Our Builder Control product is aimed at general contractors with annual volumes of $50 million to $2 Billion of annual construction value.

Builder Control was developed as a response to GC’s issues with subcontractor bonds and the delays and lack of control when a default happens. Builder Control puts the general contractor in control of any subcontractor default allowing it to make decisions in the best interests of the project.

We meet with every GC’s key management team to understand their business processes and design the best possible program for their business.

The Cove product
  • Indemnification coverage
  • 2 year policy term available plus extended warranty period
  • Each Default Limit of $30,000,000
  • Policy Aggregate Limit of $60,000,000
  • Indirect Cost Limit of $5,000,000
  • Project Specific
  • GC’s interest only
  • Rolling, multi project – defined project portfolio
  • Annual (or multi-year) Practice, GC’s or Owners Interest if owner performs the functions of a GC
  • Minimum SIR of $500,000 and 10% co-pay
The cove commercial client
  • Annual volumes of at least $50 million
  • Commercial General Contractors
  • Apartments are eligible including condominium conversions
  • Industrial/Mfg.
  • Office/Retail Structures
  • Infrastructure/Street and Roads
  • Transportation
  • Light commercial
  • Healthcare facilities
  • Government offices and facilities
  • Educational structures/schools/religious
  • For sale residential by non-affiliated general contractor

Please click here for “Ten Reasons to Choose Cove: SDI”

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